- PBMs often portray themselves as fighting the “good fight” on behalf of employers and employees.
- In reality, they are highly profitable intermediaries that typically do not take possession of the drug, bear little to no risk, and minimally innovate.
- PBM profit margins are much higher than other players in the supply chain who bear much of the public’s anger over rising drug prices.
- Express Scripts for example, one of the largest PBMs, reported gross profits of $8.76 billion in 2017.
Data from DRG Digital | Manhattan Research’s Cybercitizen Health® U.S. 2018 study of 3,084 U.S. patients show that:
- Among the 61% of patients who had researched prescription drugs online in the past 12 months, 34% had requested a specific prescription drug at least once.
- Among patients who had requested an Rx, 25% were prompted to do so by a TV ad and 25% by ads seen online.
- Among the 65% of patients who recalled seeing or hearing TV ads about prescription drugs in the past 12 months, 22% had requested a specific drug.
- Among the 49% of patients who recalled seeing or hearing online ads, 42% had requested a specific Rx drug.
- TV or online ads may be particularly effective at reaching some condition groups. Among online Rx researchers requesting a prescription, patients with multiple sclerosis, hypertension and Alzheimer’s Disease were particularly likely to cite TV ads as the impetus for their request, while patients with hepatitis C, type 1 diabetes and severe asthma were more likely to cite online ads.
- Executives at Gilead are leaving a sinking ship.
- Sales of a breakthrough drug they purchased through the acquisition of Kite Pharma have failed to match expectations.
- Gilead charges thousands of dollars for a drug for their AIDS drug, but competition is creeping in.
- Since Truvada was approved for HIV prevention six years ago, its average wholesale price has increased by about 45 percent.
- Without more drugs to buy Gilead’s stock has been declining.
- The cost of insulin more than tripled — from $231 to $736 a year per patient — between 2002 and 2013.
- A new marijuana-based epilepsy treatment is going to cost $32,500 a year.
- “The goal is to keep the price of the drug on par with other epilepsy medications”.
- PBM’s are driving hard bargains with the manufacturer and they are increasingly finding ways to expand their profitability at the expense of employers and patients.
Say, you love the Velvet Underground. You don’t listen to Sweet Jane on repeat.
You want to hear something *like* it. New; but with that same raspy drone. How do you do that? For about 90 million people, the answer is Spotify. Playlists are novel media for novel marketing. We just happen to prove it in pharma. Continue reading
- Lyrica has been a major source of revenue for Pfizer.
- The commercial success of this product was driven in large part by the 163% price increases in the last six years
Pfizer had filed and was issued patents for an additional twenty year period on a controlled-release formulation.